Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.

__________________
“Life does not ask what we want. It presents us with options”

Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.

My post had nothing to do with any of your assumptions. It was merely to confirm that 10-1 is possible on the last day of expiration, as I stated in a post last week. It was about leverage and that was my only intent if you read my previous posts.

Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.

Three tough decision hurdles to jump, and you have to be right on all 3 to get the biggest pay-off. I doubt that even the most seasoned of investors could do it. The temptation to take down the smaller sure-wins would be too great.......

What would happen (other than having to outlay a lot more money) if you bought, say a 55 strike IWM call for around $55.55. The extrinsic value being only .55˘ vis-a-vis the over $2 premium with the 108s?

What would happen (other than having to outlay a lot more money) if you bought, say a 55 strike IWM call for around $55.55. The extrinsic value being only .55˘ vis-a-vis the over $2 premium with the 108s?

If something cataclysmic happened and the Russell opened up 200 points down one morning, I'd be out a helluva lot more money if I decided to bail. That's for starters...

What would be the benefit of spending so much more for essentially similar protection to the upside?

$30 per month minimum commission requirement to avoid $10 monthly fee (rises to $20 monthly if account balance is less than $2,000)
$10 monthly for market data feed (waived if trade commissions are more than $30 per month)

And don't ask me why the P/L since open adds up to ~$30 instead of ~$36, as you might think it should if you add today's P/L to yesterday's open P/L...daily P/L isn't 100% accurate for whatever reason it seems.

I made the same trade, however my entry point was a few days later and in the middle of that -250 point Dow drop.

Maybe I got bad fills or something, (the call fills should have been good) but I'm still underwater. But if you look at the T+23 line (23 days from now) the profits will start to come in if it stays under the tent and in a good range. (But it looks like my max profit at that point will be $446.)

These are my numbers:

1010 $11.09 1
1060 $21.99 (2)
1110 $42.16 1
107 $4.17 1

Divide those profit numbers (which are T+23) on OptionVue by 10, because in order to use OptionVue for analyzing the trade I had to do a ten lot so I could hedge with 1 Rut call.

And don't ask me why the P/L since open adds up to ~$30 instead of ~$36, as you might think it should if you add today's P/L to yesterday's open P/L...daily P/L isn't 100% accurate for whatever reason it seems.

Not sure, but I think it has to do with the bid/ask spread during the trading session and the last price for the close.

The last price can be quite far away from where it's actually trading especially for the higher priced options well in the money.

The spread for my NOV 1110 put varies from $1 to $2. (As I write this the spread is $1.30--$41.80/$43.10

And on IB the running P and L uses the ask price, which you'll never get.

Update after two straight days of MAJOR swings...this is what I love about trading this way...big swings up and down and my trade was never in danger of having to be adjusted...I was never in the red at any point...obviously, if we had gone down another 200+ points on the DOW today instead of up 200+ points, I would probably be looking at an immanent adjustment...but, that's not what happened:

Copyright 1999 - 2018 -- PaceAdvantage.Com -- All Rights Reserved -- Best Viewed in a modern browser @ 1280x720 Resolution Or Higher
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising programdesigned to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.